Analyst Says Dogecoin Price Is Ready To Fly, Here’s Why

Overview

Dogecoin has recently experienced a downward trend, approaching a critical support level. A crypto analyst has highlighted this situation, suggesting that the current price action may signal an impending upward movement if certain conditions are met.

Current Price Action

In recent days, Dogecoin has continued to decline, nearing the mid-$0.13 range. The selling pressure has dominated the market, with each attempted rebound quickly fading. This has left Dogecoin stuck near the lower end of its trading range. An analyst on X has drawn attention to a significant technical level on the 2-day chart, indicating that despite the weak price action, Dogecoin is currently resting on a long-term support zone within a descending triangle pattern. This area could potentially serve as a launchpad for a strong rally if buyers respond positively.

Technical Analysis of Dogecoin

The analysis reveals that Dogecoin has been trading within a descending triangle since December 2024. This pattern is characterized by a downward-sloping trendline that has capped rallies throughout the year, resulting in a series of lower highs. Simultaneously, a horizontal support zone in the mid-$0.135 to $0.14 range has consistently caught price declines, preventing a more significant breakdown.

Currently, Dogecoin is testing this lower support level once again. The candles on the 2-day chart are clustering just above the support band, which the analyst has highlighted to emphasize the significance of this level. Previous instances of touching this support zone have led to at least temporary bounces, making this current test noteworthy. The tightening price action indicates that there is limited room for sideways movement before a decisive break occurs.

Analyst Insights

The analyst, known as Butterfly on X, has pointed out that this support level has been “respected multiple times.” They suggest that bulls may be preparing to enter the market. The critical factor is whether the lower support can hold again. If it does, the descending triangle could transition from a gradual decline to a springboard for a substantial upward reaction.

A robust defense of this support zone would imply that sellers are losing momentum at the current price levels. This scenario suggests that even a modest influx of buying could propel Dogecoin back towards the descending resistance line, which is positioned between the $0.25 to $0.26 area. A successful break and close above this trendline would signal the first clear higher high in months, indicating that the triangle has resolved upward.

Impact on the Crypto Market

• Dogecoin is currently testing a critical support level, which could influence trader sentiment.
• A successful bounce from this support zone may trigger increased buying activity.
• The formation of a descending triangle suggests potential volatility in Dogecoin’s price.
• A break above the resistance line could signal a shift in market dynamics for Dogecoin.
• The current price action may attract the attention of both retail and institutional investors.